Equity

The following tables summarize the changes in equity (in millions):



	Three Months Ended September 30, 2017								Three Months Ended September 30, 2016
	Kansas City Southern Stockholders’ Equity			Noncontrolling Interest		Total Equity			Kansas City Southern Stockholders’ Equity			Noncontrolling Interest		Total Equity
Beginning balance	$	4,192.6		$	315.2	$	4,507.8		$	4,020.6		$	311.1	$	4,331.7
Net income	129.3			0.6		129.9			120.6			0.4		121.0
Other comprehensive loss	(0.7		)	—		(0.7		)	(0.3		)	—		(0.3		)
Contribution from noncontrolling interest	—			—		—			—			2.4		2.4
Dividends on common stock	(37.3		)	—		(37.3		)	(35.5		)	—		(35.5		)
Dividends on $25 par preferred stock	(0.1		)	—		(0.1		)	(0.1		)	—		(0.1		)
Share repurchases	(200.0		)	—		(200.0		)	(40.6		)	—		(40.6		)
Options exercised and stock subscribed, net of shares withheld for employee taxes	2.7			—		2.7			2.9			—		2.9
Excess tax benefit from share-based compensation	—			—		—			0.2			—		0.2
Share-based compensation	4.1			—		4.1			4.1			—		4.1
Ending balance	$	4,090.6		$	315.8	$	4,406.4		$	4,071.9		$	313.9	$	4,385.8



	Nine Months Ended September 30, 2017								Nine Months Ended September 30, 2016
	Kansas City Southern Stockholders’ Equity			Noncontrolling Interest		Total Equity			Kansas City Southern Stockholders’ Equity			Noncontrolling Interest		Total Equity
Beginning balance	$	4,089.9		$	314.6	$	4,404.5		$	3,914.3		$	310.4	$	4,224.7
Cumulative-effect adjustment (i)	2.5			—		2.5			—			—		—
Net income	410.3			1.2		411.5			348.5			1.1		349.6
Other comprehensive loss	(1.7		)	—		(1.7		)	(1.0		)	—		(1.0		)
Contribution from noncontrolling interest	—			—		—			—			2.4		2.4
Dividends on common stock	(107.2		)	—		(107.2		)	(106.7		)	—		(106.7		)
Dividends on $25 par preferred stock	(0.2		)	—		(0.2		)	(0.2		)	—		(0.2		)
Share repurchases	(320.4		)	—		(320.4		)	(99.8		)	—		(99.8		)
Options exercised and stock subscribed, net of shares withheld for employee taxes	2.8			—		2.8			1.8			—		1.8
Excess tax benefit from share-based compensation	—			—		—			(0.2		)	—		(0.2		)
Share-based compensation	14.6			—		14.6			15.2			—		15.2
Ending balance	$	4,090.6		$	315.8	$	4,406.4		$	4,071.9		$	313.9	$	4,385.8


(i)	The Company recognized a $2.5 million net cumulative-effect adjustment to equity as of January 1, 2017, due to the adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. For additional discussion, see Note 1 - Basis of Presentation.

Share Repurchase Programs

During the second quarter of 2017, the Company concluded a $500.0 million share repurchase program that was announced in May 2015 (the “2015 Program”). In August 2017, the Company announced a new share repurchase program authorizing the Company to repurchase up to $800.0 million of its outstanding shares of common stock through June 30, 2020 (the “2017 Program”). Share repurchases may be made in the open market, through privately negotiated transactions, or through an accelerated share repurchase (“ASR”) program limited to $200.0 million.

Under an ASR agreement, the Company pays a specified amount to a financial institution and receives an initial delivery of shares. Upon settlement of the ASR agreement, typically the financial institution delivers additional shares, with the final aggregate number of shares delivered determined with reference to the volume weighted-average price per share of the Company’s common stock over the term of the ASR agreement, less a negotiated discount. The transactions are accounted for as equity transactions with any excess of repurchase price over par value allocated between additional paid-in capital and retained earnings. At the time the shares are received, there is an immediate reduction in the weighted-average number of shares outstanding for purposes of the basic and diluted earnings per share computation.

During the third quarter of 2017, the Company entered into two ASR agreements. The terms of the ASR agreements, structured as outlined above, were as follows:



Third Party Institution	Agreement Date	Settlement Date	Total Amount of Agreement (in millions)		Initial Shares Delivered	Fair Market Value of Initial Shares (in millions)		Additional Shares Delivered	Fair Market Value of Additional Shares (in millions)			Total Shares Delivered	Weighted-Average Price Per Share
ASR Agreement #1	August 2017	August 2017	$	100.0	799,398	$	85.0	151,481	$	15.0		950,879	$	105.17
ASR Agreement #2	August 2017	October 2017	$	100.0	799,398	$	85.0	151,492	$	15.0	(i)	950,890	$	105.16
Total			$	200.0	1,598,796	$	170.0	302,973	$	30.0		1,901,769	$	105.17

(i) The remaining $15.0 million as of September 30, 2017 was recorded as a forward contract indexed to the Company’s own common stock and included in capital surplus within Additional paid-in capital in the accompanying Consolidated Balance Sheet, and was subsequently settled in October 2017.

Following settlement of the ASR program in October 2017, the Company’s 2017 repurchases of common stock, which includes shares repurchased through the 2015 Program and the 2017 Program, totaled 3,241,978 shares of common stock at an average price of $98.83 per share and a total cost of $320.4 million.

Cash Dividends on Common Stock

On August 15, 2017, the Company’s Board of Directors declared a cash dividend of $0.360 per share payable on October 4, 2017, to common stockholders of record as of September 11, 2017. The aggregate amount of the dividends declared for the three and nine months ended September 30, 2017 was $37.3 million and $107.2 million, respectively.

The following table presents the amount of cash dividends declared per common share by the Company’s Board of Directors:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Cash dividends declared per common share	$	0.360	$	0.330	$	1.020	$	0.990